To xeriscape in the shade, consult my article on dry shade plants for your plant selection. In your region, you will have to water these plants more than someone living in a less arid region would.
You should also check into some native options. If you Google "wildflower society" plus the name of your state, you may find contact information for people who can supply you with some leads).
As for composting in place, don't be scared off by the idea that you would have to buy multiple compost bins. People got by making compost cheaply for years before commercial compost bins came into existence. Myself, I've built simple log-cabin style compost bins with brush for composting on the spot. You have to disassemble them to turn the compost, which is kind of a pain, but they're handy and cheap! You will, however, have to water them to promote decomposition (so if water is available on-site, you may be trading hauling compost for hauling water).
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